SMCI, NVDA Sell Off as the Market Correction Worsens

Hi everyone,

I hope you are having a great Friday!

In this post I’ll concisely share my thoughts on the day’s action. And share a bunch of stock charts that caught my eye.

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Now let’s dive in ↓

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Market Action

QQQ - What is oversold can always get oversold-er. The market dropped further today and showed some acceleration. Weak overall and no real bounce attempt. Patience is key now.

Short term bounces can be expected but the market needs time to absorb the selling and rebuild strength. We won’t have a sustained trend until we get back above a rising 10/21ema.

Under the moving averages things are more volatile and less consistent.

This is still very relevant from Oliver

IWO downtrend

Trends ( Based on QQQ)

Shortest - 10 Day EMA - Down - Below Declining

Short-term - 21 ema - Down - Below Declining

Intermediate term - 50 sma - Down - Below Declining

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Blockchain oversold bounce. Semis, Tech more downside

Key Stocks in Deepvue

NVDA ….. and there is the selling volume. The growth stock leader is breaking below the 50 sma on volume

SMCI huge selling on a lack of pre-announcement

COIN holding those recent lows for now

AGI. miners are the strongest stocks. not really getting going though

CPNG was chatting about this one with Oliver yesterday, holding up well relatively.

PAAS tight

OSCR holding up well

Market Thoughts

Correction is getting more serious. Day to day stay engaged and just track stocks that are consistency holding up better. This will be very valuable when the market finally turns up but patience is key.

Wait for the market cycle sweet spot, wait for the setups to show themselves.

No one knows what will happen next. Be fluid.

Reminder:

Risk Management is Paramount

Refuse to enter randomly without managing risk and wait for the spots to develop, they will. Stocks during strong moves always pull back to the 21 ema, 50 sma multiple times. Look for a tight and logical entry point.

Have patience, focus on the best stocks with the greatest potential. These will telegraph the rest of the market.

Take it day by day and manage risk along the way. Be ready for anything

What are your thoughts on today’s action? (Leave a comment below)

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Richard


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